Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year ago. Free cash flow margin was lower than the prior quarter but higher than the year-ago period, reflecting mixed cash conversion efficiency.
- Revenue grew, while operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure rose in both comparisons, resulting in free cash flow that was lower sequentially and higher year-over-year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Relative to the same quarter a year ago, all metrics were higher and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$705.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$198.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$212.3M
Cash generated by operations before capital spending.
CapEx
$14.2M
Capital spending and related asset purchases.
FCF margin
32.4%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-06-30 | $509.5M | $153.2M | $2.3M | $150.8M | 29.6% |
| 2023-09-30 | $547.5M | $152.8M | $6.1M | $146.7M | 26.8% |
| 2023-12-31 | $589.6M | $220.2M | $10.4M | $209.8M | 35.6% |
| 2024-03-31 | $611.3M | $212.3M | $14.2M | $198.1M | 32.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 464.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue expansion
Revenue was higher than both the prior quarter and the same quarter a year ago. The year-over-year increase in free cash flow margin coincided with higher revenue and operating cash flow.
The year-over-year improvement in free cash flow margin was accompanied by a higher revenue base and increased operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, while operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure rose in both comparisons, resulting in free cash flow that was lower sequentially and higher year-over-year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Relative to the same quarter a year ago, all metrics were higher and the free cash flow margin improved.
Monitor the relationship between revenue growth and operating cash flow, as the filing notes slower usage growth from existing customers in recent quarters.